HHS Then: Time to Cut Medicare Advantage…Now: Time to Boost Medicare Advantage

It was just February of this year that the Health and Human Services Department announced it would cut payments to Medicare Advantage, using those funds to help finance the expenses of ObamaCare. Now, in a reversal the Obama Administration said it will increase the payment for health insurers who offer the Medicare Advantage program.

The Centers for Medicare & Medicaid Services said on Monday it will increase the rate by 3.3 percent in 2014, reversing a 2.3 percent cut announced in February.

This reversal followed an intense lobbying program by seniors and Medicare Advantage Insurance providers who were warned of significant cuts to the popular program. Some insurance providers had hinted they would drop the program due to the cuts.

“The policies announced today further the agency’s goal of improving payment accuracy in all our programs, while at the same time ensuring program stability and preserving beneficiary choice,” Jonathan Blum, acting principal deputy administrator for the CMS, said in a statement.

Again, as with the Affordable Care Act itself, it appears there was little actual foresight or planning.